MEDIATEK INC. and SUBSIDIARIES CONSOLIDATED BALANCE SHEETS As of December 31, 2017 and 2016 (Amounts in Thousands of New Taiwan Dollars)
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English Translation of a Report and Financial Statements Originally Issued in Chinese MEDIATEK INC. AND SUBSIDIARIES CONSOLIDATED FINANCIAL STATEMENTS WITH REPORT OF INDEPENDENT ACCOUNTANTS FOR THE YEARS ENDED DECEMBER 31, 2017 AND 2016 - 1 - WorldReginfo - 9eddffcf-d723-4d4c-9b79-21b3ad410d23 REPRESENTATION LETTER The entities included in the consolidated financial statements as of December 31, 2017 and for the year then ended prepared under the International Financial Reporting Standards, No.10 are the same as the entities to be included in the combined financial statements of the Company, if any to be prepared, pursuant to the Criteria Governing Preparation of Affiliation Reports, Consolidated Business Reports and Consolidated Financial Statements of Affiliated Enterprises (referred to as “Combined Financial Statements”). Also, the footnotes disclosed in the Consolidated Financial Statements have fully covered the required information in such Combined Financial Statements. Accordingly, the Company did not prepare any other set of Combined Financial Statements than the Consolidated Financial Statements. Very truly yours, MediaTek Inc. Chairman: Ming-Kai Tsai March 23, 2018 - 2 - WorldReginfo - 9eddffcf-d723-4d4c-9b79-21b3ad410d23 WorldReginfo - 9eddffcf-d723-4d4c-9b79-21b3ad410d23 WorldReginfo - 9eddffcf-d723-4d4c-9b79-21b3ad410d23 WorldReginfo - 9eddffcf-d723-4d4c-9b79-21b3ad410d23 WorldReginfo - 9eddffcf-d723-4d4c-9b79-21b3ad410d23 WorldReginfo - 9eddffcf-d723-4d4c-9b79-21b3ad410d23 English Translation of Financial Statements Originally Issued in Chinese MEDIATEK INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS As of December 31, 2017 and 2016 (Amounts in thousands of New Taiwan Dollars) ASSETS Notes December 31, 2017 % December 31, 2016 % Current assets Cash and cash equivalents 4, 6(1) $ 145,338,376 37 $ 140,560,858 38 Financial assets at fair value through profit or loss-current 4, 5, 6(2) 724,507 - 1,970,502 1 Available-for-sale financial assets-current 4, 5, 6(3) 23,291,828 6 9,428,674 3 Debt instrument investments for which no active market exists-current 4, 6(5), 8 765,445 - 1,505,492 - Notes receivables, net 2,811 - 2,811 - Trade receivables, net 4, 5, 6(6) 16,892,585 4 20,477,995 6 Other receivables 6(6), 7 21,251,357 5 5,497,925 1 Current tax assets 4, 5 866,917 - 357,517 - Inventories, net 4, 5, 6(7) 26,539,614 7 33,922,914 9 Prepayments 6(8) 1,390,432 - 1,505,221 - Non-current assets held for sale 4, 6(30) - - 3,633,726 1 Other current assets 1,600,624 1 1,413,935 - Total current assets 238,664,496 60 220,277,570 59 Non-current assets Financial assets at fair value through profit or loss-noncurrent 4, 5, 6(2) 4,616,406 1 4,997,093 2 Available-for-sale financial assets-noncurrent 4, 5, 6(3) 14,345,644 4 18,914,717 5 Financial assets measured at cost-noncurrent 4, 6(4) 12,635,302 3 6,895,187 2 Debt instrument investments for which no active market exists-noncurrent 4, 6(5), 8 397,880 - 257,928 - Investments accounted for using the equity method 4, 6(9), 6(29) 5,777,104 2 5,905,795 2 Property, plant and equipment 4, 6(10), 6(30), 8 36,938,640 10 36,857,740 10 Investment property 4, 6(11), 8 873,651 - 651,408 - Intangible assets 4, 6(12), 6(13), 6(30) 76,029,080 19 72,014,554 19 Deferred tax assets 4, 5, 6(27) 3,898,877 1 3,265,695 1 Refundable deposits 319,734 - 326,152 - Long-term lease receivables 4, 6(14) - - 211,137 - Prepayments for investments 160,340 - - - Net defined benefit assets-noncurrent 4, 6(18) 2,080 - 2,070 - Long-term prepaid rent 154,951 - 134,726 - Total non-current assets 156,149,689 40 150,434,202 41 Total assets $ 394,814,185 100 $ 370,711,772 100 The accompanying notes are an integral part of the consolidated financial statements. Chairman : Ming-Kai Tsai President : Lih-Shyng Tsai Chief Financial Officer : David Ku - 8 - WorldReginfo - 9eddffcf-d723-4d4c-9b79-21b3ad410d23 English Translation of Financial Statements Originally Issued in Chinese MEDIATEK INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS As of December 31, 2017 and 2016 (Amounts in thousands of New Taiwan Dollars) LIABILITIES AND EQUITY Notes December 31, 2017 % December 31, 2016 % Current liabilities Short-term borrowings 6(15) $ 64,315,682 16 $ 54,523,984 15 Financial liabilities at fair value through profit or loss-current 4, 5, 6(2) 18,144 - 45,098 - Trade payables 23,012,859 6 23,706,560 6 Trade payables to related parties 7 571,593 - 923,557 - Other payables 6(16) 35,796,290 9 33,937,995 9 Current tax liabilities 4, 5, 6(27) 1,980,597 1 3,415,214 1 Liabilities directly associated with non-current assets held for sale 4, 6(30), 7 - - 675,043 - Other current liabilities 1,525,368 - 2,100,815 1 Current portion of long-term liabilities 6(17), 8 36,850 - 18,425 - Total current liabilities 127,257,383 32 119,346,691 32 Non-current liabilities Long-term borrowings 6(17), 8 336,192 - 400,661 - Long-term payables 1,726,364 1 - - Net defined benefit liabilities-noncurrent 4, 6(18) 657,072 - 840,331 - Deposits received 7 179,472 - 177,512 - Deferred tax liabilities 4, 5, 6(27) 3,126,723 1 3,025,449 1 Non-current liabilities-others 331,966 - 258,250 - Total non-current liabilities 6,357,789 2 4,702,203 1 Total liabilities 133,615,172 34 124,048,894 33 Equity attributable to owners of the parent Share capital 6(19) Common stock 15 ,814,140 4 15 ,821,122 4 Capital collected in advance 231 - - - Capital surplus 6(19), 6(20), 6(31) 88 ,210,819 22 89 ,815,356 24 Retained earnings 6(19) Legal reserve 36 ,998,379 9 34 ,628,319 10 Undistributed earnings 100 ,629,197 26 92 ,324,282 25 Other equity 6(20) 18 ,214,847 5 12 ,245,801 3 Treasury shares 4, 6(19) ( 55,970) - ( 55,970) - Equity attributable to owners of the parent 259 ,811,643 66 244 ,778,910 66 Non-controlling interests 4, 6(19), 6(31) 1 ,387,370 - 1 ,883,968 1 Total equity 261 ,199,013 66 246 ,662,878 67 Total liabilities and equity $ 394,814,185 100 $ 370,711,772 100 The accompanying notes are an integral part of the consolidated financial statements. Chairman : Ming-Kai Tsai President : Lih-Shyng Tsai Chief Financial Officer : David Ku - 9 - WorldReginfo - 9eddffcf-d723-4d4c-9b79-21b3ad410d23 English Translation of Financial Statements Originally Issued in Chinese MEDIATEK INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME For the years ended December 31, 2017 and 2016 (Amounts in thousands of New Taiwan Dollars, except for earnings per share) Description Notes 2017 % 2016 % Net sales 4, 5, 6(21) $ 238,216,318 100 $ 275,511,714 100 Operating costs 4, 5, 6(7), 6(22), 7 (153,330,436) ( 64) (177,321,882) ( 64) Gross profit 84 ,885,882 36 98 ,189,832 36 Operating expenses 6(22), 7 Selling expenses (10,465,092) (5) (12,413,733) (5) Administrative expenses (7,430,872) (3) (7,015,080) (3) Research and development expenses (57,170,776) (24) (55,685,244) (20) Total operating expenses (75,066,740) (32) (75,114,057) (28) Operating income 9 ,819,142 4 23 ,075,775 8 Non-operating income and expenses Other income 4, 6(23), 7 3,475,974 1 3,485,549 2 Other gains and losses 4, 6(24) 14,809,523 6 544,326 - Finance costs 6(25) ( 939,344) - ( 558,906) - Share of profit of associates accounted for using the equity method 4, 6(9) 72,168 - 666,141 - Total non-operating income and expenses 17,418,321 7 4,137,110 2 Net income before income tax 27,237,463 11 27,212,885 10 Income tax expense 4, 5, 6(27) (3,167,365) (1) (3,182,353) (1) Net income 24,070,098 10 24,030,532 9 Other comprehensive income 4, 6(9), 6(26), 6(27) Items that may not be reclassified subsequently to profit or loss Remeasurements of the defined benefit plan 207,977 - ( 65,079) - Income tax relating to those items not to be reclassified to profit or loss ( 35,356) - 11,064 - Items that may be reclassified subsequently to profit or loss Exchange differences resulting from translating the financial statements of foreign operations (4,439,045) (2) (4,504,523) (2) Unrealized gains from available-for-sale financial assets 10,785,999 5 11,297,597 4 Share of other comprehensive income of associates accounted for using the equity method ( 7,559) - 125,345 - Income tax relating to those items to be reclassified to profit or loss (1,248,983) (1) (1,172,986) - Other comprehensive income, net of tax 5,263,033 2 5,691,418 2 Total comprehensive income $ 29,333,131 12 $ 29,721,950 11 Net income (loss) for the periods attributable to : Owners of the parent 6(28) $ 24,332,604 $ 23,700,598 Non-controlling interests 6(19), 6(31) ( 262,506) 329,934 $ 24,070,098 $ 24,030,532 Total comprehensive income for the periods attributable to : Owners of the parent $ 29,601,582 $ 29,463,494 Non-controlling interests ( 268,451) 258,456 $ 29,333,131 $ 29,721,950 Basic Earnings Per Share (in New Taiwan Dollars) 6(28) $ 15.56 $ 15.16 Diluted Earnings Per Share (in New Taiwan Dollars) 6(28) $ 15.47 $ 15.13 The accompanying notes are an integral part of the consolidated financial statements.